Due to widespread presence of distributed energy resources (DERs) in current power systems and need to a two-way communication system between the system operator and distributed generators, storage units and controllable loads, presence of a smart distribution system with proper communication infrastructure is required. Considering complication of smart grid operation in presence of DERs, there is various operating method where most of them aim to minimize the operation cost. In this paper, a more precise model of operating cost of energy storage systems has been proposed where the life cycle, times of charge or discharge and depth of discharge of the storage units have been taken into account. This model has been applied on operation cost function in presence of distributed generators and responsive loads. In order to study the system constraints the proposed model has been applied on a 69 buses distribution system with 5 fuel cell units, 5 micro turbine units, 3 lead-acid battery units, and 10 responsive loads. The PSO algorithm has been employed so as to achieve optimum solution. The simulation results validate the proposed model performance.
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